PARIS: French tyre-maker Michelin said Monday it was paying 440 million euros (RM1.9bil) to acquire the Brazilian company Sascar which is involved in lorry fleet management and freight security.
"The innovative and dynamic company has developed a strong presence in the independent trucker and small truck fleet segment in Brazil, which underpins the country's land transportation market," Michelin said in a statement.
Michelin said the acquisition of Sascar would speed the growth of its lorry tyre business in Brazil and it would look to replicate Sascar's success throughout the rest of South America.
Sao Paulo-based Sascar earned an operating profit of 37 percent of roughly 91 million euros it earned last year managing 190,000 lorries for 33,000 companies, said Michelin.
The deal, which is subject to approval by Brazilian competition authorities, also includes acquisition of around 80 million euros in debt. - AFP
